As the clock ticked down to the sell-or-ban deadline of Saturday April 5, President Donald Trump signed an executive order on Thursday to extend TikTok’s reprieve for another 75 days. Trump has instructed the U.S. Justice Department to delay enforcing the ban until June 19, in order to give its owner, China-based ByteDance, more time to make a deal that would see it divest the app’s American operations.
The President has asserted significant control over TikTok’s future in the U.S., even proposing that the government take a stake in a sale. However, according to reports, the deal needs more work and will also require approval from China, which was recently hit with punishing tariffs by the Trump administration. As part of a new agreement, ByteDance would retain control of its algorithm while leasing it to the U.S. buyer, with ByteDance holding a minority stake.
“My administration has been working very hard on a deal to save TikTok, and we have made tremendous progress,” wrote Trump on his platform, Truth Social. “We hope to continue working in good faith with China, who I understand are not very happy about our reciprocal tariffs.”
This is TikTok’s second reprieve, with the ban having been delayed on January 19, just as Trump was taking office. At the time, TikTok users in the U.S. briefly lost access to the app, and it was also removed from app stores before the President granted another 75 days for ByteDance to arrange a sale. TikTok in Canada has not been impacted by any of these events.
The social and short-form video platform has a long roster of suitors to choose from, including Amazon, mobile tech company AppLovin, venture capital firm Andreessen Horowitz, and private equity firm Blackstone. Other companies showing interest or have been a part of discussions in recent months include software company Oracle, artificial intelligence engine Perplexity, Jesse Tinsley and Jimmy Donaldson (MrBeast), as well as Shark Tank host Kevin O’Leary and Frank McCourt. Elon Musk, Microsoft, and a group of U.S. investors that included Oracle and Blackstone were also in the mix.
Caroline Breton, managing director of Involved Media Canada, says she believes Amazon (which put in an 11th-hour bid last week) is a front-runner choice. “It rounds up the Amazon offering nicely when you think of the mix with Twitch. The opportunities become endless. It could reshape the way people interact with both social media and online shopping. We would probably see the integration of Amazon’s e-commerce business with TikTok’s platform – streamlining the shopping experience and new shopping features, allowing users to purchase products directly through TikTok videos or live streams.”
Breton adds that Amazon’s strong data analytics, combined with TikTok’s user behaviour insights, could create an even more powerful advertising model. “TikTok has a massive user base that would allow Amazon to compete against Google and Meta. I could see the integration with Amazon Prime, with exclusive content, or deals for Prime members directly on TikTok, which could further drive subscriptions. It could drive influencer content as well.”
Emily Wells, manager of social strategy for Cairns Oneil, says that because data privacy and compliance are pivotal in the digital advertising landscape, the sale of TikTok could help alleviate regulatory concerns across North America, reassuring both advertisers and brands. A sale could also provide a streamlined resolution in the event of TikTok operation closures in Canada, which are currently being challenged by TikTok in court.
Wells says the delay creates continued uncertainty and confusion for Canadian brands and advertisers. “We were optimistic for a deal that could have alleviated concerns for our clients but are instead left with the same uncertainty and new concern over possible politicalization of the decision. There is some confidence that a deal will eventually be made, and we are hopeful for a firm decision so more long-term plans can be made. In the interim, we will continue to leverage TikTok for our clients, understanding the platform’s value, but will stay vigilant for any updates with regards to security risks.”
